Newbie Bitcoin Business Plan

[AdamR]

Guys,

While here in the newbie area I would like to introduce myself and share some information on how I plan to start a bitcoin business. Perhaps others will be interested in joining.

As we all know currently the way to go for mining is using ASICS. Unfortunately BFL isnt shippin and Avalons are all sold out of stock (available for $40k to $55k on Ebay). Thus, my plan is to purchase 10,000 Avalon ASICS chips, wait for the Avalon PCB to be released then contract manufacture the PCBs in China and build a super miner. I figure with 10,000 chips I could produce about 36 machines (around 280 chips per machine) and generate around $700k usd per month.

Any thoughts, tips, advice?

[FinShaggy]

Good luck.

[18RATTT]

Good luck.

im interested in this thread... care to elaborate "good luck" in which area??

[FinShaggy]

Good luck.

im interested in this thread... care to elaborate "good luck" in which area??

Affording it. Building them. Paying for however much electricity it costs to make 700k. If it was so easy, wouldn't there be no room left for new miners?

[Hailo]

capital for start up would be immense 

[inspiredinvestor]

because of the ASIC processing shortage it's to intensely study chinese AND electrical engineering over the next month 
 move to china, and build a uber mining rig!

[AdamR]

As luck would have it, here are some more details (I hope by sharing we can coloborate and build on each others ideas, we could also invest together to make this happen - think crowd sourcing):

Avalon's Current Batch #2 Unit runs on 3 Boards of 80 ASIC Chips (That is a total of 240 Chips per Unit). Each unit is capable of 63 Gh/s (63,000Mhash).
https://en.bitcoin.it/wiki/Avalon#Pictures

With 10,000 chips you can produce around 41 Units at 240 chips per unit, rack them up and pump out  2583 Gh/s (2,583,000 Mhash).

Based on this the Bitcoin Mining Calculator http://www.bitcoinx.com/profit/, this would result in around $15k USD profit per day and today's levels. This equates to a net earnings of around $450k USD per month.

Avalon has recently made their ASIC chip avaible with a minimum purchase order of 10,000 chips for 780 BTC (Somewhere between $62k to $90k USD due to BTC volatility).
http://store.avalon-asics.com/?product=avalon-asic-chips-10000

In addition, Avalon is said to be releasing their PCB electronic file which you would take to your neighborhood friendly PCB maufacturing facility to comission the manufacture of the PCB boards with the chips. Get this done directly in China for a fraction of the cost. Next work out the BOM and assembly of the 41 Units. Alternateively, there are others on this forum working on their own stackable PCBs using Avalons chips. It stands to reason that if you can get your hands on the chips, you can make some serious gains either way.

[inspiredinvestor]

yep AdamR, you are definetely on to something there are several group buys going on for those 10000 Avalon chips,
have you joined one yet?
I am evaluating them too

[Rymd]

 

[FinShaggy]

[bigdude]

You haven't factored in the massive increase in difficulty that will happen over the next few months due to the flood of ASIC's hitting the network.

When that happens, your income per day will drop constantly.

So, you will need to rush .. get everything urgently built, and hope for the best.

Time is the factor on this one.

[brioche]

You haven't factored in the massive increase in difficulty that will happen over the next few months due to the flood of ASIC's hitting the network.

When that happens, your income per day will drop constantly.

So, you will need to rush .. get everything urgently built, and hope for the best.

Time is the factor on this one.

Also there's no guarantee that the current value of BTC will hold out. If it drops and stays low it would be like having a bad home loan, or massive credit card debt.

[tbomb]

Yep, in theory I think that's what everyone would like to do.

But the chips would probably be the least expensive part of the whole deal!!

[Shortstain]

Given how the prices of BTC are gonna see some flux after the hash increases, I'd hold off personally.... but I don't have huge amounts of capital either.